The cryptocurrency exchange firm in Japan, Coincheck has revealed a security breach resulting in a loss of $400 million. Recently Coincheck has restricted certain payment features. In a tweet, the company has discussed the unauthorized remittance and their plan to offer compensation to the customers.

“This notice is to announce that a reparations policy towards the approximately 260,000 users affected by the recent illicit transfer of NEM from the cryptocurrency exchange platform Coincheck, run by Coincheck, Inc. (CEO Wada Koichiro), has been decided upon and will be as follows."

Source: coincheck.com

Since Coincheck is among the top 10 cryptocurrency exchange companies, security breaches like this will affect the investors' interest in cryptocurrency as they won't consider it a safe investment option.

However, the decision of the company to repay their customers is highly appreciated and we hope, their apology and reassurance statement will help customers regain faith in this kind of investments. Have a look -

"We realize that this illicit transfer of funds from our platform and the resulting suspension in services has caused immense distress to our customers, other exchanges, and people throughout the cryptocurrency industry, and we would like to offer our deepest and humblest apologies to all of those involved. In moving towards reopening our services, we are putting all of our efforts towards discovering the cause of the illicit transfer and overhauling and strengthening our security measures while simultaneously continuing in our efforts to register with the Financial Services Agency as a Virtual Currency Exchange Service Provider."